BBA 302 - Formulation Of Hypothesis Business Research
Added on 2020-03-04
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PART AFormulation of HypothesisA car that provides the highest amount of satisfaction to Lucas based on his individual needs andwants while maximizing the relative benefit per unit cost along with being available in hisbudget would be the ideal car that which needs to be chosen.Key question developmentKey Question: Is the given car suited for me?Sub-question1: What are the benefits associated with this car?Sub-question 2: How do these fit into Lucas needs and wants with regards to car purchase?Sub-question 3: What are the costs associated (including hidden costs) with the given car?Factors influencing Lucas Decision along with rankingFactors that influence purchasing decisionsAnalyse how these factors will influence Luca’s decisionImportanceof factor(1–10)PersonalAge and gender This is having an impact as Luca being a young male is looking for a sporty and stylish car.5Personal tastes/ preferencesThe preference in terms of car is driven by individual preferences that Luca has which is particularly visible in color choice (blue) along with other parameters.6SocialReference groupThe social group consists of primarily friends and Luca intends to show off his car especially at the party on Saturday.4Social roleA social image of Luca would be formed on the basis of the car selected and hence it is imperative that it would align with his socialrole.3
Factors that influence purchasing decisionsAnalyse how these factors will influence Luca’s decisionImportanceof factor(1–10)EconomicPriceConsidering that Luca has maximum budget of 15,000, price is an extremely important consideration and cars above this price would be ruled out.10Ongoing running costsThe car needs to be fuel efficient so that the consumption and expense on fuel can be minimized. 9Other hidden costsLow maintenance cost is imperative for Luca considering he is still studying and wants to minimize expenses. Also, depreciation needs to be low so that Luca can trade it after 5 years for decent cash.9PsychologicalMotivesThe car is required primarily to commute from university to job place so that the travelling time could be cut down and productivity enhanced.7PerceptionA social image is attached to the vehicledriven and hence perception of Luca withregards to car plays a crucial role withregards to selection8CulturalNationalityLuca hails from Italy and prefers a car froman Italian manufacturer as he believes thatcars manufactured in Italy are top notch.5EnvironmentalLow carbon emissions Luca is a student of environmental scienceand hence low carbon emissions is a criticalconsideration for him while buying car.9Ranking of factors has been completed above by considering the needs and wants.
Hidden Financial CostsHidden financial costs of purchasing a motor vehicleProvide notes and sources of data and informationa.car service and repair costsDefinition: The car would require servicing and repair from time to time based on the usage and the frequency with which various technical snags tend to happen. Car servicing is typically done after a specified distance has been covered while repair is dependent on mechanical reliability of the vehicle.Examples and purpose of the cost involved: The purpose of these costs would be to ensure that the car remains in proper working condition and is able to deliver high fuel efficiency. Examples include repairing of technical snags while service cost includes general cleaning, oil changing etc.How this cost will influence the consumer decision: Depending upon the underlying brand, distance travelled and the merchantability of the underlying car, these costs could be significant and hence these need tobe minimized considering Luca wants to minimize the hidden costs. Sources: https://www.carsguide.com.au/car-advice/car-servicing-explained-46101b.fuel costsDefinition: The car tends to require fuel for running and hence ongoing
Hidden financial costs of purchasing a motor vehicleProvide notes and sources of data and informationfuel cost is required. Additionally, it also would include the environmental costs due to emissions.Examples and types of costs involved: The primarily cost would include the cost of underlying fuel (may be petrol, electricity, any otherfuel). Objective would be to minimize the cost. However, secondary cost would be the impact on environment which may not be reflected in the fuel pricing but still is significant but going forward emissions may be charged.How this cost will influence the consumer decision: Considering that Luca intends to drive extensively that too on a daily basis, low fuel costs are essential. Further, preference should be given to green vehicles as they tend to minimise the secondary costs of environmentalpollution.Sources: http://www.sidrasolutions.com/documents/ACE2006_AKCELIKPaper.pdfhttps://www.gizmodo.com.au/2016/08/australian-motorists-could-end-up-paying-for-new-fuel-emissions-regulations/c.car insurance costsDefinition: In case of all Australian drivers, compulsory third party insurance is mandatory to drive. The cost tends to depend on a host of factors including the level of cover desired for the car.
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